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Geese people....Let me explain. We are not in a fixed loan. We have an arm loan and it is going to go up in August. Our mortgage broker told us that is was a good loan for now and we could refinance in august for a better loan. That was 2 years ago. So BEENA we have always paid our payments but now we are afraid we won't be able to afford them. We can't refinance because we have NO equity in the house. Our house payment might go up a $1000.00 a month. I know we should have researched the loan more but we trusted our mortgage broker to lead us in the right direction. But no one could have predicted the market drop. So NO we're not just going to walk away from our responsibilities, but we might be forced to. We both have very high perfect credit, but we may be stuck. Thanks
Well with this info, hmm. California is a nasty market. So, if you decide to sell, you definitely need a back-up plan in case you don't sell by August. I don't know the condition of your home but even the most gorgeous, desirable ones are sitting or are being low-balled to death. I think you guys should start preparing as if you won't be out by August. I mean it is only 5 months away. Is there any possible way to cut your monthly expenses to make up that extra 1K? Perhaps go without cable or other costly entertainment for a while? If the kids are in expensive activities, maybe cut those off for a while? Maybe you or hubby find part-time work for extra cash? There are a lot of companies that will let you work part-time from home. Just want to give you some options to think about because you don't want to have to think about them when August gets here. And if you are able to sell, you'll have that extra cash to go to the greater good ya know? So, sit with hubby and come up with a game plan. You don't want to mess up your credit if you still have a chance not to.
If you can hang on to the home, I would. CA is still a very desirable state to live in. Things are changing so fast, come August you may be in a different market. Best of luck.
"That is the funniest thing I have read all day. Thanks."
No problem. That was a freebie.
How about you tell us what it will do next? 1 year, 2 years, 3 years.
I don't see Scottsdale and the Phx area prices coming back to 2005 level any time soon. But I have been wrong before.
How about you tell us what it will do next? 1 year, 2 years, 3 years.
I don't see Scottsdale and the Phx area prices coming back to 2005 level any time soon. But I have been wrong before.
1 Year: East Cost: Dropping areas will fall another 10% and stabilize. Inventories experience slight downtick. NAR cries victory. West Coast: 20% price drops in most areas. Volume at a standstill. Unsold inventories stable but forclosures ballooning.
2 Years: East Coast: Rocky year with some areas losing low single-digit % values and some areas ganing the same. Inventories approach normal levels. West coast: Additional 10-15% decline on average. Inventories stable at all-time highs. Slight downtick at the end of the year. NAR claims housing market "best ever."
3 Years: East Coast: Values appreciate on aveage 2-5%. Inventories stable at historical averages. House values are now 4-5 years away from reaching 2005-6 highs.
West Coast: Values up in low single digits in some areas, down in others. Inventories decline slightly. NAR claims housing market "best imaginable".
If you planned to flip in two years..you're out of luck on appreciation.
If you planned to live there 10 years or more..then continue paying. By then values will have appreciated.
So we live in California and bought a house for $530,000. Now our house is worth $470,000. We have an interest rate of 7.7% Our mortgage payment is really high. We keep thinking why are we paying this amount for nothing. It's like we're paying rent to the bank because our payment going down means nothing right now. So we are thinking about doing a short sale and getting out. We were told that we might be able to do a short sale without it affecting our credit if we try to make a deal with the mortgage company. One mortgage broker told us that if we said we would still make our payment until the house sells they might not turn it in to out credit. Or our other option is doing a 125% loan and lowering our payment so at least we have the extra money to pay off our other bills. We really need some advice. Thank you
You could do a short sale or also, your payment may not increase as much as you think b/c the indexes the ARMs are tied to are actually coming down. What index are you tied to? And, who is doing 125% loans now?
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it's your credit and....
